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AOO AOVP AON
AOO
AOO/AON/AOVP - African & Overseas Enterprises - Unaudited Interim Group Results
for the six months ended 31 December 2009
AFRICAN & OVERSEAS ENTERPRISES LIMITED
(Incorporated in the Republic of South Africa - Reg No. 1947/027461/06)
Share codes: AOO - AON - AOVP
ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493
Unaudited Interim Group Results for the six months ended 31 December 2009
HIGHLIGHTS:
- OPERATING PROFIT UP 19.7%
- HEADLINE EARNINGS UP 11.5%
- STRONG CASH FLOW
- STRONG BALANCE SHEET
COMMENTARY
The principal operating subsidiary Rex Trueform Clothing Company Limited
reports as follows:
"In the difficult economic environment revenue declined by 3.8% largely as a
result of lower turnover in the manufacturing division.
Operating profit increased by 19.9% as a result of an improved performance by
the Queenspark retail segment. Earnings per share amounted to 73.1 cents,
compared to 66.2 cents last year, an improvement of 10.4%. Headline earnings per
share improved by 11.8% to 73.0 cents compared with 65.3 cents per share
last year.
Retail
Consumers remained under pressure and turnover growth was limited to 0.4%. In
the challenging retail environment same store sales declined by 1.9%. Four new
stores were opened during the period, which together with improved margins and
operating efficiencies resulted in an increase of 33.8% in Queenspark`s
operating profit compared to the same period of last year.
Manufacturing
A reduction in orders at the Atlantis manufacturing plant and the subsequent
reorganisation of this factory resulted in an increased operating loss.
Prospects
Retail performance remains affected by the depressed incomes, rising costs and
low confidence levels of consumers. The costs associated with running the
business, particularly energy costs also continue to rise. The manufacturing
segment will also continue to present a challenge.
Past performance benefited materially from the Duty Credit Certificate Scheme
which is to be completely phased out in the near future.
Current strategy is directed at strengthening Queenspark`s position in the
market-place through growth of the store base, store upgrades and a renewed
focus on the product offering.
The depressed economic conditions are expected to continue well into 2010 and
the achievement of sales and profit targets will remain challenging."
Signed on behalf of the board
ML Krawitz (Chairman) PE Shub (Chief Executive Officer)
Cape Town
5 March 2010
Statement of comprehensive income
Consolidated (R`000)
Six months ended Year ended
31 December 30 June
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
Revenue 246 526 256 191 502 787
Turnover 241 687 249 565 491 023
Cost of sales (117 708) (138 387) (274 748)
Gross profit 123 979 111 178 216 275
Employment costs (38 914) (35 534) (71 663)
Occupancy costs (31 106) (24 739) (53 325)
Depreciation and amortisation (6 547) (6 088) (12 248)
Other operating costs (30 753) (32 031) (54 489)
Rental income 17 1 003 408
Royalties 503 561 1 118
Operating profit 17 179 14 350 26 076
Dividends received 16 23 23
Finance income 4 303 5 039 10 215
Finance expenses (182) (160) (446)
Profit before taxation 21 316 19 252 35 868
Income tax expense (6 977) (6 235) (11 422)
Total comprehensive income for
the period 14 339 13 017 24 446
Profit attributable to:
Ordinary and `N` ordinary
shareholders 7 662 6 965 12 936
Preference shareholders 72 72 138
Profit attributable to equity
holders of the parent 7 734 7 037 13 074
Non-controlling interest 6 605 5 980 11 372
Total comprehensive income
for the period 14 339 13 017 24 446
Reconciliation of headline
earnings
Attributable earnings 7 662 6 965 12 936
Profit on disposal of plant
and equipment (9) (103) (192)
Headline earnings 7 653 6 862 12 744
Headline earnings per share
(cents) 67.2 60.3 111.9
Earnings per share (cents) 67.3 61.2 113.6
Weighted average number of
equity shares on which
earnings per share is
based (000) 11 387 11 387 11 387
Statement of financial position
Consolidated (R`000)
At At
31 December 30 June
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
Assets
Non-current assets 65 590 58 086 60 484
Property, plant and equipment 53 883 41 045 47 058
Investment property 3 511 3 511 3 511
Intangible assets 2 065 3 120 2 720
Investments (unlisted) 722 722 722
Deferred taxation 5 409 9 688 6 473
Current assets 196 126 199 265 201 962
Inventories 50 202 81 683 68 484
Trade and other receivables 16 891 29 930 19 205
Income tax receivable 394 14 14
Cash and cash equivalents 128 639 87 638 114 259
Total assets 261 716 257 351 262 446
Equity and liabilities
Capital and reserves 220 016 200 339 211 777
Share capital 1 200 1 200 1 200
Share premium 6 076 6 076 6 076
Other reserves 551 2 917 530
Retained earnings 114 299 101 108 109 533
Non-controlling interest 97 890 89 038 94 438
Non-current liabilities 12 353 11 885 11 653
Post-retirement liability 4 085 4 231 4 122
Accrued operating lease
liability 8 268 7 654 7 531
Current liabilities 29 347 45 127 39 016
Provisions 578 837 669
Trade and other payables 27 829 39 455 32 578
Forward exchange contracts 940 1 131 5 642
Income tax payable - 3 704 127
Total equity and liabilities 261 716 257 351 262 446
Abridged statement of cash flows
Consolidated (R`000)
Six months ended Year ended
31 December 30 June
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
Cash generated by operations 25 573 21 725 45 085
Working capital changes 10 077 (18 371) (2 720)
Finance income 4 303 5 039 10 215
Finance expenses (182) (160) (446)
Taxation paid (6 420) (4 167) (9 716)
Dividends received 16 23 23
Dividends paid (6 137) (6 137) (6 162)
Net cash inflow/(outflow) from
operations 27 230 (2 048) 36 279
Additions to property, plant
and equipment (12 874) (9 836) (22 090)
Proceeds on disposal of
property, plant and equipment 24 311 859
Net cash outflows from
investing activities (12 850) (9 525) (21 231)
Net increase/(decrease) in
cash and cash equivalents 14 380 (11 573) 15 048
Cash and cash equivalents at
beginning of period 114 259 99 211 99 211
Cash and cash equivalents at
end of period 128 639 87 638 114 259
Statement of changes in equity
Consolidated (R`000)
Six months ended Year ended
31 December 30 June
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
Share capital 1 200 1 200 1 200
Share premium 6 076 6 076 6 076
Other reserves
Opening balance 530 2 896 2 896
Share-based payments 21 21 39
Transfer to retained earnings - - (2 405)
Closing balance 551 2 917 530
Retained earnings
Opening balance 109 533 97 039 97 039
Profit attributable to equity
holders of the parent 7 734 7 037 13 074
Transfer from reserves - - 2 405
Dividends (2 968) (2 968) (2 985)
Closing balance 114 299 101 108 109 533
Non-controlling interest
Opening balance 94 438 86 211 86 211
Profit attributable to
minority interest 6 605 5 980 11 372
Share-based payments 16 16 32
Dividends (3 169) (3 169) (3 177)
Closing balance 97 890 89 038 94 438
Total capital and reserves 220 016 200 339 211 777
Segmental reporting
Consolidated (R`000)
Six months ended Year ended
31 December 30 June
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
Segment revenue
Retail 234 461 233 608 467 318
Manufacturing 7 729 16 518 24 823
Manufacturing total 8 815 18 017 27 192
Less: intersegment sales (1 086) (1 499) (2 369)
Property 17 1 003 408
Total segment revenue 242 207 251 129 492 549
Other 4 319 5 062 10 238
Total revenue 246 526 256 191 502 787
Segment profit/(loss)
Retail 23 162 17 312 32 035
Property (348) 137 507
Manufacturing (3 116) (766) (2 095)
Segment profit 19 698 16 683 30 447
Group Services* (2 519) (2 333) (4 371)
Total operating profit 17 179 14 350 26 076
Segment assets
Retail 180 388 194 003 180 248
Property 8 695 8 784 8 725
Manufacturing 10 288 19 094 11 348
Total segment assets 199 371 221 881 200 321
Group Services* 62 345 35 470 62 125
Total assets 261 716 257 351 262 446
* Group Services includes corporate costs.
Other information
Consolidated (R`000)
Six months ended Year ended
31 December 30 June
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
Capital expenditure 12 874 9 836 22 090
Capital commitments (authorised -
not contracted for) 11 050 11 574 16 168
Current ratio 6.7 4.4 5.2
Notes
1. Basis of preparation
These interim financial statements have been prepared in accordance with
International Accounting Standard IAS 34: Interim Financial Reporting.
They are also compliant with International Financial Reporting Standards
(IFRS).
These results have not been audited or reviewed by the company`s auditors,
KPMG Inc.
2. Accounting policies
The accounting policies applied in these interim statements are consistent with
those applied in the preparation of the group`s annual financial statements for
the year ended 30 June 2009.
3. Preference dividend
A dividend on the 6% cumulative participating preference shares for the six
months ended 31 December 2009 in the amount of R121 000 was declared on
1 December 2009 and paid on 28 December 2009.
Directors: ML Krawitz + (Chairman), PE Shub (Chief Executive Officer)
(alt ML Krawitz +), CEA Radowsky, JC O`Brien, PM Naylor*, RV Orlin* and
DS Johnson
* Independent non-executive + Non-executive
African & Overseas Enterprises Limited (Incorporated in the Republic of South
Africa - Reg No. 1947/027461/06)
Share codes: AOO - AON - AOVP
ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493
Registered office: Rex Buildings, 263 Victoria Road, Salt River, Cape Town
7925
Secretary: AA Hodgkinson.
Transfer secretaries: Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg 2001
Sponsor: Java Capital (Pty) Limited
Websites:
www.queenspark.com
www.rextrueform.com
8 March 2010
Date: 08/03/2010 12:31:01 Produced by the JSE SENS Department.
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